Achieves Strong Q1 Free Cash Flow and EPS
Growth
ScanSource, Inc. (NASDAQ: SCSC), a leading hybrid distributor
connecting devices to the cloud, today announced financial results
for the first quarter ended September 30, 2024.
First Quarter Summary
Q1 FY25
Q1 FY24
Change
(in thousands, except
percentages and per share data)
Select reported measures:
Net sales
$
775,580
$
876,305
-11.5%
Gross profit
$
101,619
$
106,508
-4.6%
Gross profit margin %
13.10
%
12.15
%
95bp
Operating income
$
17,630
$
24,084
-26.8%
GAAP net income
$
16,974
$
15,432
10.0%
GAAP diluted EPS
$
0.69
$
0.61
13.1%
Select Non-GAAP measures*:
Adjusted EBITDA
$
35,666
$
34,919
2.1%
Adjusted EBITDA margin %
4.60
%
3.98
%
62bp
Non-GAAP net income
$
20,823
$
18,728
11.2%
Non-GAAP diluted EPS
$
0.84
$
0.74
13.5%
Note: Margin % reflects measure as a
percentage of sales.
n/m - not meaningful
* Represents non-GAAP financial measures.
For more information and a reconciliation to the most directly
comparable GAAP financial measure, see "Non-GAAP Financial
Information" below as well as the accompanying Supplementary
Information.
“In the first quarter, our team delivered strong free cash flow
and EPS growth in a soft demand environment,” said Mike Baur,
Chairman and CEO, ScanSource, Inc. “Our results demonstrate our
hybrid distribution success with our focus on specialty
technologies and Intelisys & advisory recurring revenue.”
New Reporting Segments
Effective July 1, 2024, ScanSource realigned its operating
segments to represent the different sales models it uses in
executing its hybrid distribution growth strategy. The two
realigned operating segments are Specialty Technology Solutions and
Intelisys & Advisory. The Specialty Technology Solutions
segment combines the Company’s former segments, with the exception
of the Company’s Intelisys business. The Intelisys & Advisory
segment includes the Company’s Intelisys and technology advisors
businesses, including Channel Exchange (formerly known as intY
USA), RPM and Resourcive. Both segments include recurring
revenue.
ScanSource has reclassified certain prior period amounts in the
accompanying Supplementary Information under “Segment Information”
to conform with the current quarter presentation. These
reclassifications had no effect on the condensed consolidated
financial results.
Quarterly Results
Net sales for the first quarter of fiscal year 2025 totaled
$775.6 million, down 11.5% year-over-year, or down 10.7% for
non-GAAP net sales (organic growth). Net sales for products and
services decreased 12.5% year-over-year, while recurring revenue
increased 18.8% year-over-year. Specialty Technology Solutions net
sales for the first quarter decreased 11.9% year-over-year to
$752.3 million primarily due to continued soft demand in a more
cautious technology spending environment. Intelisys & Advisory
net sales for the first quarter increased 4.1% year-over-year to
$23.3 million primarily from an increase in Intelisys sales.
Gross profit for the first quarter of fiscal year 2025 decreased
4.6% year-over-year to $101.6 million with a gross profit margin of
13.10% versus 12.15% in the prior-year quarter. The gross profit
margin reflects a higher contribution of recurring revenue in our
overall revenue mix, which is recorded on a net basis and therefore
contributes to a higher gross profit margin. For the first quarter
of fiscal year 2025, the percentage of gross profit from recurring
revenue increased to 31.8%.
For the first quarter of fiscal year 2025, operating income was
$17.6 million compared to $24.1 million in the prior-year quarter.
First quarter fiscal year 2025 non-GAAP operating income decreased
to $27.5 million from $28.5 million in the prior-year quarter.
On a GAAP basis, net income for the first quarter of fiscal year
2025 totaled $17.0 million, or $0.69 per diluted share, compared to
net income of $15.4 million, or $0.61 per diluted share, for the
prior-year quarter. First quarter fiscal year 2025 non-GAAP net
income totaled $20.8 million, or $0.84 per diluted share, up from
$18.7 million, or $0.74 per diluted share, for the prior-year
quarter.
On a non-GAAP basis, adjusted EBITDA for the first quarter of
fiscal year 2025 increased 2.1% to $35.7 million, or 4.60% of net
sales, compared to $34.9 million, or 3.98% of net sales, for the
prior-year quarter.
Balance Sheet and Cash Flow
As of September 30, 2024, ScanSource had cash and cash
equivalents of $145.0 million and total debt of $143.6 million.
ScanSource generated $44.8 million of operating cash flow and
$42.5 million of free cash flow (non-GAAP) for the first quarter of
fiscal 2025. ScanSource also had share repurchases of $28.1 million
for the first quarter of fiscal 2025.
Acquisition of Resourcive
On August 8, 2024, ScanSource completed the acquisition of
Resourcive, a leading technology advisor, included in the Intelisys
& Advisory segment. Founded in 2001 in Pelham, NY, Resourcive
delivers strategic IT sourcing solutions to the mid-market and
enterprise, advising clients on value creation strategies that are
enabled by technology. Starting with the acquisition of Resourcive,
ScanSource is creating the advisory channel model of the future.
This business is separate from ScanSource’s Intelisys business, the
industry’s leading technology services distributor.
Acquisition of Advantix
On August 15, 2024, ScanSource completed the acquisition of
Advantix, a VAR-focused, managed connectivity experience provider
specializing in wireless enablement solutions, included in the
Specialty Technology Solutions segment. Founded in 2001 in Frisco,
Texas, Advantix enables mobility VARs to sell hardware combined
with the recurring revenue stream from data connectivity. The
Advantix acquisition is the launching point for ScanSource’s new
Integrated Solutions Group (ISG). The ISG is focused on developing
solutions and services that provide channel partners the
opportunity to wrap additional value around their hardware
offerings.
Annual Financial Outlook for Fiscal Year 2025
ScanSource reaffirms previously provided guidance set forth
below for the full fiscal year ended June 30, 2025.
FY25 Annual Outlook
Net sales
$3.1 billion to $3.5
billion
Adjusted EBITDA (non-GAAP)
$140 million to $160
million
Free cash flow (non-GAAP)
At least $70 million
Adjusted EBITDA is a non-GAAP measure, which excludes estimates
for amortization of intangible assets, depreciation expense, and
non-cash shared-based compensation expense. Free cash flow is a
non-GAAP measure, which excludes the effect of estimated capital
expenditures from estimated operating cash flow.
ScanSource believes that a quantitative reconciliation of such
forward-looking information to the most directly comparable GAAP
financial measure cannot be made without unreasonable efforts,
because a reconciliation of these non-GAAP financial measures would
require an estimate of future non-operating items such as
acquisitions and divestitures, restructuring costs, impairment
charges and other unusual or non-recurring items. Neither the
timing nor likelihood of these events, nor their probable
significance, can be quantified with a reasonable degree of
accuracy. Accordingly, a reconciliation of such forward-looking
information to the most directly comparable GAAP financial measure
is not provided.
Webcast Details and Earnings Infographic
At approximately 8:45 a.m. ET today, an Earnings Infographic, as
a supplement to this press release and the earnings conference
call, will be available on ScanSource's website, www.scansource.com
(Investor Relations section). ScanSource will present additional
information about its financial results and business in a
conference call today, November 7, 2024, at 10:30 a.m. ET. A
webcast of the call will be available for all interested parties
and can be accessed at www.scansource.com (Investor Relations
section). The webcast will be available for replay for 60 days.
Safe Harbor Statement
This press release contains “forward-looking” statements,
including ScanSource's FY25 annual outlook, which involve risks and
uncertainties, many of which are beyond ScanSource's control. No
undue reliance should be placed on such statements, as any number
of factors could cause actual results to differ materially from
anticipated or forecasted results, including, but not limited to,
the following factors, which are neither presented in order of
importance nor weighted: macroeconomic conditions, including
potential prolonged economic weakness, inflation, the failure to
manage and implement ScanSource's growth strategy, credit risks
involving ScanSource's larger customers and suppliers, changes in
interest and exchange rates and regulatory regimes impacting
ScanSource's international operations, risk to the business from a
cyberattack, a failure of IT systems, failure to hire and retain
quality employees, loss of ScanSource's major customers,
relationships with key suppliers and customers or a termination or
a modification of the terms under which it operates with these key
suppliers and customers, changes in ScanSource's operating
strategy, and other factors set forth in the "Risk Factors"
contained in ScanSource's annual report on Form 10-K for the year
ended June 30, 2024. Except as may be required by law, ScanSource
expressly disclaims any obligation to update these forward-looking
statements to reflect events or circumstances after the date of
this press release or otherwise.
Non-GAAP Financial Information
In addition to disclosing results that are determined in
accordance with United States Generally Accepted Accounting
Principles ("GAAP"), ScanSource also discloses certain non-GAAP
financial measures, which are summarized below. Non-GAAP financial
measures are used to understand and evaluate performance, including
comparisons from period to period. Non-GAAP results exclude items
such as amortization of intangible assets related to acquisitions,
acquisition and divestiture costs, gain on sale of business, and
restructuring costs and include other non-GAAP adjustments.
Net sales on a constant currency basis excluding acquisitions
and divestitures to calculate organic growth ("non-GAAP net
sales"): ScanSource discloses the percentage change in net sales
excluding the translation impact from changes in foreign currency
exchange rates between reporting periods and excluding the net
sales from acquisitions and divestitures prior to the first full
year from the transaction date. This measure enhances the
comparability between periods to help analyze underlying trends on
an organic basis.
Adjusted earnings before interest expense, income taxes,
depreciation, and amortization (“Adjusted EBITDA”): Adjusted EBITDA
starts with net income and adds back interest expense, income tax
expense, depreciation expense, amortization of intangible assets,
changes in fair value of contingent considerations, and other
non-GAAP adjustments, including acquisition and divestiture costs,
gain/loss on sale of business, restructuring costs, cyberattack
restoration costs, insurance recovery, tax recovery, and non-cash
share-based compensation expense. Since Adjusted EBITDA excludes
some non-cash costs of investing in ScanSource’s business and
people, management believes that Adjusted EBITDA shows the
profitability from the business operations more clearly. The
Adjusted EBITDA margin is calculated as Adjusted EBITDA as a
percentage of net sales.
Adjusted return on invested capital ("Adjusted ROIC"): Adjusted
ROIC assists management in comparing ScanSource's performance over
various reporting periods on a consistent basis because it removes
from operating results the impact of items that do not reflect core
operating performance. Management believes the calculation of
Adjusted ROIC provides useful information to investors and is an
additional relevant comparison of its performance. Adjusted ROIC is
calculated as Adjusted EBITDA over invested capital. Invested
capital is defined as average equity plus average daily funded
interest-bearing debt for the period. Management believes the
calculation of Adjusted ROIC provides useful information to
investors and is an additional relevant comparison of ScanSource's
performance during the year.
Free cash flow: ScanSource presents free cash flow as it is a
measure used by management to measure our business. ScanSource
believes this measure provides more information regarding liquidity
and capital resources. Free cash flow is defined as cash flows from
operating activities less capital expenditures.
Net debt: Net debt includes total balance sheet debt less cash
and cash equivalents. ScanSource believes this measure is useful in
assessing its borrowing capacity.
Additional Non-GAAP Metrics: To evaluate current period
performance on a more consistent basis with prior periods,
ScanSource discloses non-GAAP SG&A expenses, non-GAAP operating
income, non-GAAP pre-tax income, non-GAAP net income, and non-GAAP
diluted earnings per share (non-GAAP diluted EPS). These non-GAAP
results exclude amortization of intangible assets related to
acquisitions, acquisition and divestiture costs, gain on sale of
business, restructuring costs, and other non-GAAP adjustments.
These metrics include the translation impact of changes in foreign
currency exchange rates. Non-GAAP metrics are useful in assessing
and understanding ScanSource's performance especially when
comparing results with previous periods or forecasting performance
for future periods.
These non-GAAP financial measures have limitations as analytical
tools, and the non-GAAP financial measures that ScanSource reports
may not be comparable to similarly titled amounts reported by other
companies. Analysis of results and outlook on a non-GAAP basis
should be considered in addition to, and not in substitution for or
as superior to, measurements of financial performance prepared in
accordance with GAAP. A reconciliation of ScanSource's non-GAAP
financial information to GAAP is set forth in the Supplementary
Information (Unaudited) below.
About ScanSource, Inc.
ScanSource, Inc. (NASDAQ: SCSC) is a leading hybrid distributor
connecting devices to the cloud and accelerating growth for channel
partners across hardware, software as a service (SaaS),
connectivity and cloud. ScanSource enables channel partners to
deliver solutions for their end customers to address changing
buying and consumption patterns. ScanSource uses multiple sales
models to offer hybrid distribution solutions from leading
suppliers of specialty technologies, connectivity and cloud.
Founded in 1992 and headquartered in Greenville, South Carolina,
ScanSource was named one of the 2024 Best Places to Work in South
Carolina and on FORTUNE magazine’s 2024 List of World’s Most
Admired Companies. ScanSource ranks #776 on the Fortune 1000. For
more information, visit www.scansource.com.
ScanSource, Inc. and
Subsidiaries
Condensed Consolidated Balance
Sheets (Unaudited)
(in thousands, except share
data)
September 30, 2024
June 30, 2024*
Assets
Current assets:
Cash and cash equivalents
$
145,044
$
185,460
Accounts receivable, less allowance of
$22,721 at September 30, 2024 and $20,684 at June 30, 2024
567,127
581,523
Inventories
504,078
512,634
Prepaid expenses and other current
assets
136,110
125,082
Total current assets
1,352,359
1,404,699
Property and equipment, net
32,940
33,501
Goodwill
232,856
206,301
Identifiable intangible assets, net
77,800
37,634
Deferred income taxes
17,490
19,902
Other non-current assets
73,064
76,995
Total assets
$
1,786,509
$
1,779,032
Liabilities and
Shareholders’ Equity
Current liabilities:
Accounts payable
$
578,657
$
587,984
Accrued expenses and other current
liabilities
69,326
65,616
Income taxes payable
6,376
7,895
Current portion of long-term debt
9,736
7,857
Total current liabilities
666,006
669,352
Long-term debt, net of current portion
133,913
136,149
Borrowings under revolving credit
facility
—
50
Long-term portion of contingent
consideration
15,289
—
Other long-term liabilities
50,408
49,226
Total liabilities
865,616
854,777
Commitments and contingencies
Shareholders’ equity:
Preferred stock, no par value; 3,000,000
shares authorized, none issued
—
—
Common stock, no par value; 45,000,000
shares authorized, 24,005,107 and 24,243,848 shares issued and
outstanding at September 30, 2024 and June 30, 2024,
respectively
2,975
26,370
Retained earnings
1,030,712
1,013,738
Accumulated other comprehensive loss
(112,794
)
(115,853
)
Total shareholders’ equity
920,893
924,255
Total liabilities and shareholders’
equity
$
1,786,509
$
1,779,032
*Derived from audited financial
statements.
ScanSource, Inc. and
Subsidiaries
Condensed Consolidated Income
Statements (Unaudited)
(in thousands, except per
share data)
Quarter ended September 30,
2024
2024
2023
Net sales
$
775,580
$
876,305
Cost of goods sold
673,961
769,797
Gross profit
101,619
106,508
Selling, general and administrative
expenses
71,706
75,436
Depreciation expense
2,857
2,795
Intangible amortization expense
4,358
4,193
Restructuring and other charges
5,068
—
Operating income
17,630
24,084
Interest expense
2,109
5,585
Interest income
(2,659
)
(1,325
)
Other (income) expense, net
(4,782
)
677
Income before income taxes
22,962
19,147
Provision for income taxes
5,988
3,715
Net income
$
16,974
$
15,432
Per share data:
Net income per common share, basic
$
0.70
$
0.62
Weighted-average shares outstanding,
basic
24,147
24,886
Net income per common share, diluted
$
0.69
$
0.61
Weighted-average shares outstanding,
diluted
24,646
25,178
ScanSource, Inc. and
Subsidiaries
Condensed Consolidated
Statements of Cash Flows (Unaudited)
(in thousands)
Quarter ended September
30,
2024
2023
Cash flows from operating activities:
Net income
$
16,974
$
15,432
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation and amortization
7,471
7,217
Amortization of debt issue costs
96
96
Provision for doubtful accounts
1,678
4,157
Share-based compensation
2,471
2,769
Deferred income taxes
2,433
1,303
Finance lease interest
25
15
Changes in operating assets and
liabilities, net of acquisitions:
Accounts receivable
20,606
53,284
Inventories
9,524
99,630
Prepaid expenses and other assets
(1,952
)
(7,743
)
Other non-current assets
3,285
11,227
Accounts payable
(17,002
)
(70,292
)
Accrued expenses and other liabilities
744
(21,764
)
Income taxes payable
(1,523
)
(1,798
)
Net cash provided by (used in) operating
activities
44,830
93,533
Cash flows from investing activities:
Capital expenditures
(2,375
)
(2,315
)
Cash paid for business acquisitions, net
of cash acquired
(56,849
)
—
Net cash provided by (used in) investing
activities
(59,224
)
(2,315
)
Cash flows from financing activities:
Borrowings on revolving credit, net of
expenses
8,381
588,570
Repayments on revolving credit, net of
expenses
(8,430
)
(669,424
)
Repayments on long-term debt, net
(357
)
(938
)
Borrowings (repayments) on finance lease
obligation
(275
)
(191
)
Exercise of stock options
6,971
72
Taxes paid on settlement of equity
awards
(4,794
)
(1,582
)
Common stock repurchased
(28,126
)
—
Net cash (used in) provided by financing
activities
(26,630
)
(83,493
)
Effect of exchange rate changes on cash
and cash equivalents
608
(1,256
)
Increase in cash and cash equivalents
(40,416
)
6,469
Cash and cash equivalents at beginning of
period
185,460
36,178
Cash and cash equivalents at period
end
$
145,044
$
42,647
ScanSource, Inc. and
Subsidiaries
Supplementary Information
(Unaudited)
(in thousands, except
percentages)
Non-GAAP Financial Information:
Quarter ended September
30,
2024
2023
Reconciliation of Net Income to
Adjusted EBITDA:
Net income (GAAP)
$
16,974
$
15,432
Plus: Interest expense
2,109
5,585
Plus: Income taxes
5,988
3,715
Plus: Depreciation and amortization
7,471
7,217
EBITDA (non-GAAP)
32,542
31,949
Plus: Share-based compensation
2,471
2,769
Plus: Acquisition and divestiture
costs
377
—
Plus: Cyberattack restoration costs
76
201
Plus: Restructuring costs
5,068
—
Plus: Insurance recovery, net of
payments
(4,868
)
—
Adjusted EBITDA (numerator for Adjusted
ROIC) (non-GAAP)
$
35,666
$
34,919
Invested Capital Calculations:
Equity – beginning of the period
$
924,254
$
905,298
Equity – end of the period
920,893
915,253
Plus: Share-based compensation, net
1,856
2,068
Plus: Acquisition and divestiture
costs
377
—
Plus: Cyberattack restoration costs,
net
57
150
Plus: Restructuring costs, net of tax
3,818
—
Plus: Insurance recovery, net
(3,667
)
—
Average equity
923,794
911,385
Average funded debt (b)
144,020
352,897
Invested capital (denominator for Adjusted
ROIC) (non-GAAP)
$
1,067,814
$
1,264,282
Adjusted return on invested capital ratio
(Adjusted ROIC), annualized(a)
13.3
%
11.0
%
(a) The annualized adjusted EBITDA amount
is divided by days in the quarter times 365 days per year, or 366
days for leap year. There were 92 days in the current and
prior-year quarter.
(b) Average funded debt is calculated as
the average daily amounts outstanding on short-term and long-term
interest-bearing debt.
ScanSource, Inc. and
Subsidiaries
Supplementary Information
(Unaudited)
Net Sales by Segment:
Quarter ended September
30,
2024
2023
% Change
Specialty Technology Solutions:
(in thousands)
Net sales, reported
$
752,299
$
853,950
(11.9
)%
Foreign exchange impact (a)
8,645
—
Less: Divestitures
—
(2,282
)
Less: Acquisitions
(3,512
)
—
Non-GAAP net sales
$
757,432
$
851,668
(11.1
)%
Intelisys & Advisory:
Net sales, reported
$
23,281
$
22,355
4.1
%
Foreign exchange impact (a)
(3
)
—
Less: Acquisitions
(577
)
—
Non-GAAP net sales
$
22,701
$
22,355
1.5
%
Consolidated:
Net sales, reported
$
775,580
$
876,305
(11.5
)%
Foreign exchange impact (a)
8,642
—
Less: Divestitures
—
(2,282
)
Less: Acquisitions
(4,089
)
—
Non-GAAP net sales
$
780,133
$
874,023
(10.7
)%
(a) Year-over-year net sales growth rate
excluding the translation impact of changes in foreign currency
exchange rates. Calculated by translating the net sales for the
quarter ended September 30, 2024 into U.S. dollars using the
average foreign exchange rates for the quarter ended September 30,
2023.
ScanSource, Inc. and
Subsidiaries
Supplementary Information
(Unaudited)
Net Sales by Revenue Type:
Quarter ended September
30,
2024
2023
% Change
(in thousands)
Revenue by product/service:
Products and services
$
741,567
$
847,674
(12.5
)%
Recurring revenue(a)
34,013
28,631
18.8
%
$
775,580
$
876,305
(11.5
)%
(a) Recurring revenue represents primarily
agency commissions, SaaS, subscriptions, and hardware rentals.
ScanSource, Inc. and
Subsidiaries
Supplementary Information
(Unaudited)
(in thousands)
Segment Information:
Quarter ended
Fiscal year ended
September 30, 2023
December 31, 2023
March 31, 2024
June 30, 2024
June 30, 2024*
Net sales:
Specialty Technology Solutions
$
853,950
$
861,514
$
729,834
$
722,251
$
3,167,549
Intelisys & Advisory
22,355
23,278
22,765
23,862
92,260
$
876,305
$
884,792
$
752,599
$
746,113
$
3,259,809
Gross profit:
Specialty Technology Solutions
$
84,263
$
77,591
$
71,840
$
73,563
$
307,257
Intelisys & Advisory
22,245
23,157
22,641
23,752
91,795
$
106,508
$
100,748
$
94,481
$
97,315
$
399,052
Operating income (loss):
Specialty Technology Solutions
$
17,636
$
19,696
$
14,581
$
14,764
$
66,677
Intelisys & Advisory
6,649
8,273
7,488
8,186
30,596
Corporate
(201
)
(1,143
)
(4,527
)
(1,078
)
(6,949
)
$
24,084
$
26,826
$
17,542
$
21,872
90,324
Quarter ended
Fiscal year ended
September 30, 2022
December 31, 2022
March 31, 2023
June 30, 2023
June 30, 2023*
Net sales:
Specialty Technology Solutions
$
923,399
$
989,668
$
863,965
$
924,635
$
3,701,667
Intelisys & Advisory
20,414
21,573
21,554
22,513
86,054
$
943,813
$
1,011,241
$
885,519
$
947,148
$
3,787,721
Gross profit:
Specialty Technology Solutions
$
93,174
$
93,861
$
90,302
$
86,243
$
363,580
Intelisys & Advisory
20,311
21,473
21,460
22,415
85,659
$
113,485
$
115,334
$
111,762
$
108,658
$
449,239
Operating income (loss):
Specialty Technology Solutions
$
30,192
$
32,618
$
28,283
$
21,736
$
112,829
Intelisys & Advisory
4,696
6,814
5,996
7,011
24,517
Corporate
—
—
—
(1,460
)
(1,460
)
$
34,888
$
39,432
$
34,279
$
27,287
$
135,886
*Derived from audited financial
statements.
ScanSource, Inc. and
Subsidiaries
Supplementary Information
(Unaudited)
Net Sales by Geography:
Quarter ended September
30,
2024
2023
% Change
United States and Canada:
(in thousands)
Net sales, as reported
$
712,019
$
791,000
(10.0
)%
Less: Acquisitions
(4,089
)
—
Non-GAAP net sales
$
707,930
$
791,000
(10.5
)%
Brazil:
Net sales, reported(a)
$
63,561
$
85,305
(25.5
)%
Foreign exchange impact(b)
8,642
—
Less: Divestitures
—
(2,282
)
Non-GAAP net sales
$
72,203
$
83,023
(13.0
)%
Consolidated:
Net sales, reported
$
775,580
$
876,305
(11.5
)%
Foreign exchange impact(b)
8,642
—
Less: Divestitures
—
(2,282
)
Less: Acquisitions
(4,089
)
—
Non-GAAP net sales
$
780,133
$
874,023
(10.7
)%
(a) Countries outside of the United
States, Canada and Brazil represent $0.1 million, or 0.2% of sales,
for the quarter ended September 30, 2024 and $2.4 million, or 2.8%
of sales, for the quarter ended September 30, 2023.
(b) Year-over-year net sales growth rate
excluding the translation impact of changes in foreign currency
exchange rates. Calculated by translating the net sales for the
quarter ended September 30, 2024 into U.S. dollars using the
average foreign exchange rates for the quarter ended September 30,
2023.
Free Cash Flow:
Quarter ended September
30,
2024
2023
GAAP operating cash flow
$
44,830
$
93,533
Less: Capital expenditures
(2,375
)
(2,315
)
Free cash flow (non-GAAP)
$
42,455
$
91,218
ScanSource, Inc. and
Subsidiaries
Supplementary Information
(Unaudited)
(in thousands, except per
share data)
Reconciliation of Other Non-GAAP
Financial Information:
Quarter ended September 30,
2024
GAAP Measure
Intangible amortization
expense
Acquisition & divestiture
costs(a)
Restructuring costs
Insurance recovery,
net
Cyberattack restoration
costs
Non-GAAP measure
(in thousands, except per
share data)
SG&A expenses
$71,706
$—
$(377)
$—
$—
$(76)
$71,253
Operating income
17,630
4,358
377
5,068
—
76
27,509
Pre-tax income
22,962
4,358
377
5,068
(4,868)
76
27,973
Net income
16,974
3,264
377
3,818
(3,667)
57
20,823
Diluted EPS
$0.69
$0.13
$0.02
$0.15
$(0.15)
$—
$0.84
Quarter ended September 30,
2023
GAAP Measure
Intangible amortization
expense
Acquisition & divestiture
costs
Restructuring costs
Insurance recovery,
net
Cyberattack restoration
costs
Non-GAAP measure
(in thousands, except per
share data)
SG&A expense
$75,436
$—
$—
$—
$—
$(201)
$75,235
Operating income
24,084
4,193
—
—
—
201
28,478
Pre-tax income
19,147
4,193
—
—
—
201
23,541
Net income
15,432
3,146
—
—
—
150
18,728
Diluted EPS
$0.61
$0.12
$—
$—
$—
$0.01
$0.74
(a) Acquisition and divestiture costs for
the quarter ended September 30, 2024 are generally nondeductible
for tax purposes.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241107556924/en/
Steve Jones Senior EVP, Chief Financial Officer ScanSource, Inc.
(864) 286-4302
Mary M. Gentry SVP, Treasurer and Investor Relations ScanSource,
Inc. (864) 286-4892
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